Taxes Alert!

RobinZ

Well-known member
Messages
124
I know many artists who sell part time or occasionally or even full time have flown under the radar with taxes.

However, you might want to rethink this year. The IRS has been directed and financed to plump up their workforce, specifically regarding enforcement. That means audits.

Also, the Feds want to make banks report any transaction over $600, which, if it happens, will put a target on the back of anyone selling over that amount.

I don't want to get into any of the moral or political aspects of this, just an alert. I was audited when my husband had a sign painting business on the side in our basement, and although I reported everything, it was a harrowing experience!
 

Artyczar

Moderator
Messages
9,462
They are monsters! But I report everything, even (most) of my cash sales. It sucks though. Self-employment is no fun.
 

RobinZ

Well-known member
Messages
124
Me, too. I come from a small business owner family so know that's there.

Another thing, make sure you work your taxes into your pieces price!
 

Artyczar

Moderator
Messages
9,462
That, I never do. I forget and the buyers (many times) don't understand it and think the price gets up too high.
 

KreativeK

Moderator
Messages
1,838
Not a pleasant environment these days, especially in the federal sector from whence I came; doubtful they will be able to hire that many people. Keep good records and all receipts.
 

Scamall

Well-known member
Messages
372
I have a separate business account so anything deposited in that is what I use to report taxes. It’s also a handy way to keep track of business expenses.
 

Artyczar

Moderator
Messages
9,462
I am so old fashioned and I keep a ledger. It sounds like a pain in the ass, and it is! But it's just an old habit and the only way I can keep track because I use so many different accounts (cash, checking, savings, credit cards, etc.).
 
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